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At-Risk Basis Calculator

§465 at-risk rules limit loss deductions to amounts you have economically at risk in the activity. At-risk basis = cash contributed + recourse debt + qualified non-recourse debt (real estate only) − losses already deducted. Losses above this basis are suspended and carry forward. This calculator computes your current at-risk basis.

$
$

Personally liable

$

Real estate only

$

Current at-risk basis

$495,000

Future loss limit

How the math works

At-risk basis = cash contributed + recourse debt + qualified non-recourse (real estate only) − losses already deducted. You can only deduct losses up to your at-risk basis. Losses above are suspended, carry forward.

Real estate gets a special break: qualified non-recourse debt counts toward at-risk basis even though you're not personally liable. Pure non-recourse debt (other businesses) doesn't qualify.

How to Use

  1. Enter cash contributed to the activity.
  2. Enter recourse debt (personally liable) and qualified non-recourse debt (real-estate-secured).
  3. Enter losses already deducted.
  4. Read current at-risk basis (your future loss deductibility cap).

Frequently Asked Questions

Recourse vs non-recourse?

Recourse: you're personally liable. Non-recourse: lender's only collateral is the asset. Recourse adds to at-risk basis; non-recourse generally doesn't — except real-estate-secured QNR.

Qualified non-recourse?

Real estate financing from commercial lender (bank, insurance company, GSE) where the lender isn't related to the borrower. Common conventional rental mortgages qualify.

Suspended losses?

Losses above at-risk basis carry forward. They free up when your at-risk basis grows (more cash, more recourse debt) or you dispose of the activity.

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